Tax Traders has announced the world’s first asset-backed commercial paper that is secured by provisional tax deposits held on account with Inland Revenue (IR).
The ground-breaking paper – which has received a Prime-1 (sf) rating from Moody’s and therefore has a sovereign-equivalent rating – will be issued by Tax Traders Sovereign Investment Trust, with Westpac acting as a placement agent and providing liquidity support. New Zealand Guardian Trust will act as trustee under the programme.
“Our asset backed commercial paper presents institutional investors with a high-quality opportunity, as supported by Moody’s P-1 rating. As a pioneering fintech, we’ve harnessed New Zealand’s unique tax pooling system to develop a first-of-its-kind funding product which will allow us to fuel our consistent growth and diversify our funding options,” says Tax Traders Chief Investment Officer Christoph Vojc.
Driven by a foundational belief that the benefits of New Zealand’s unique tax legislation should be available to every New Zealand provisional taxpayer, along with ongoing tech and financial innovation, Tax Traders is a key player in the tax pooling industry. And as a proud B Corp – ranked in the top 5% in the world – Tax Traders demonstrates that growth, innovation and being a force for good in the world, go hand in hand.
“Innovation is part of our DNA at Tax Traders and Taxi, and we are proud to continue our track record of introducing novel structures and products to the market," says Tax Traders and Taxi Co-Founder Josh Taylor.
Tax pooling is a legislative framework that was introduced in New Zealand more than 20 years ago to provide an efficient and flexible way for provisional taxpayers to meet their tax obligations. Tax Traders has established itself as the market leader since it started providing the service in 2012 and has a client base of 13,000 businesses.
This ongoing growth has led Tax Traders to bring this new opportunity to the market, further diversifying its growing base of institutional investment. This investment underpins the cash-flow and treasury management capacity that tax pooling provides to New Zealand taxpayers, from NZX-listed household names through to sole traders.
Tax Traders is now the preferred partner to many of New Zealand’s leading accounting firms and confirmed by independent market research as the most preferred tax pooling provider in New Zealand.
Tax Traders is a purpose-driven IR-approved digital services provider, offering a smarter, more streamlined way to manage provisional tax. Their secure platform gives accountants greater control and confidence, backed by globally recognised ISO 27001 certification for data protection.
With Tax Traders, accountants can quickly generate accurate provisional and terminal tax notices, optimise clients' tax positions in minutes, and deliver high-value solutions with ease. The company has been recognised in the top 5% of B Corps worldwide for ethics, accountability, and transparency, and was named the overall winner in New Zealand’s 2024 Best Places to Work awards.